Wear OS currently accounts for about 18% of the wearable market share. There's also a WearOS session scheduled for I/O so they're still interested. The major hurdle has been the SoC. WearOS devices are still using the antiquated 28nm Snapdragon 2100 SoC which was created in 2014.

It was mostly attributed to Qualcomm who left them hanging dry until this February.

Heard where? Highly doubt Google is going to pull out of the wearable space.